PLN EPI, BEG, and Poland’s G7 Group partner to boost Indonesia’s biomass exports

Jakarta – PT PLN Energi Primer Indonesia (PLN EPI), a subsidiary of PT PLN (Persero), signed a Memorandum of Understanding (MoU) with PT Biomassa Energi Group (BEG) and G7 Group Sp. z.o.o. from Poland to develop the biomass business from upstream to export, PLN EPI announced on Monday, October 13.

The agreement covers cooperation in strengthening the national biomass supply chain, palm kernel shell (PKS) trading, and the construction of empty fruit bunch (EFB) pellet factories aimed at exporting to Asian and European markets.

PLN EPI Biomass Director Hokkop Situngkir said that this step is part of PLN EPI’s grand strategy to support the national energy transition and create green economic opportunities for Indonesia.

“Our biomass potential reaches around 130 million tons per year, but only a small amount is being utilised. Through this collaboration, we want to turn this potential into concrete opportunities, both to support the decarbonization of the national electricity system and to meet global demand for green energy,” said Hokkop.

According to Hokkop, PLN EPI is now not only focused on being a domestic primary energy provider. Still, it is also expanding its “Beyond kWh” business by entering the international biomass trading market and exporting sustainable fuels.

“We ensure that domestic biomass supplies remain secure for PLN’s co-firing needs, while strengthening Indonesia’s contribution to the global low-carbon economy,” he explained.

On behalf of the partner, Legal Advisor of G7 Group Sp. z.o.o., Rogowski Wojciech, welcomed the cooperation positively. He assessed that Indonesia has great potential to become a major player in the global biomass market, in line with the increasing demand for renewable energy in Europe and Asia.

“We believe Indonesia has all the key factors to become a global leader in the biomass market. Even before this MoU was signed, we had already prepared a long-term strategy to secure our share of the export market,” said Rogowski.

Rogowski revealed that the first EFB pellet factory, a collaboration between PLN EPI, BEG, and G7 Group, will begin operations in February 2026 with an initial capacity of 120,000 tons per year. In the next phase, five additional factories with similar or greater capacity will be built in various potential regions in Indonesia.

“With this expansion, Indonesia’s total biomass export capacity could reach up to 3 million tons per year. The collaboration with PLN EPI provides significant added value in terms of credibility and international trust,” said Rogowski. (Hartatik)

Banner photo: Image generated by OpenAI’s DALL·E via ChatGPT (2024)

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